Coach America Holdings Files Chapter 11; JPMorgan Leads DIP Loan

Coach America Holdings Inc. announced that, in order to ensure its long-term competitiveness and continue to provide industry-leading service to its customers, the company and its subsidiaries have filed a voluntary petition for Chapter 11 reorganization in the United States Bankruptcy Court for the District of Delaware. This decision was made with a focus on reducing its debt and advancing the best interests of the company and its stakeholders.

In connection with the filing:

Coach America has obtained a commitment for $30 million of debtor-in-possession (DIP) financing from a steering committee of its existing senior lenders, led by JPMorgan Chase. This financing, subject to approval by the Bankruptcy Court, will support the company’s fleet investment and help ensure the continuation of normal operations.

Coach America is continuing accelerated discussions with its Lenders on a restructuring that will position it for future growth and competitive success.

George Maney, president and CEO of Coach America, said, “Coach America has, for too long, been constrained by our capital structure, and today’s decision will ensure a stronger Company focused on delivering critical transportation services to our customers across the country. I want to emphasize that it is business as usual for Coach America throughout the Chapter 11 process, and we look forward to a right-sized capital structure that will enhance our competitiveness and ability to serve our customers going forward.”

Brian Cejka, Coach America’s chief restructuring officer, added, “We appreciate the support and commitment of our lending group and debt holders, and are focused on an effective, expeditious process to enhance Coach America’s competitiveness and value for all stakeholders.”

Coach America is filing motions with the court seeking interim relief that will ensure the company’s continued ability to conduct normal operations. Coach America’s investment banker is Rothschild Inc., legal counsel is Lowenstein Sandler, and its financial advisor is Alvarez & Marsal North America.

More information about Coach America’s Chapter 11 filing, including resources for customers and suppliers, is available at www.coachamerica.com/restructure.

Coach America is a tour and charter bus operator and the second largest motorcoach service provider in the highly fragmented U.S. surface transportation industry.